The pound extended its rally on Thursday after the Bank of England kept interest rates on hold and hinted at slightly faster future rate rises if Brexit goes smoothly.
Sterling jumped to a day’s high of $1.2930 and traded up 1.2 per cent on the day after the decision.
It was trading around $1.2915 before the central bank’s announcement.
Versus the euro, the pound also rose further, up nearly half a per cent at 88.27 pence but below the day’s high.